Can You Afford Retirement Without A Pension?

A retirement plan, Social Security, and some personal savings: This was all most retirees required a few decades ago to enjoy their golden years thoroughly. In today's world, one of those three foundations has largely evaporated.

With fewer retirees relying on a regular stream of pension income, developing other income sources for use in retirement is critical.

Even without a pension, having enough money to sustain a long and pleasurable retirement is doable. If you're among many Americans with a 401(k) or 403(b) rather than a pension plan, it's up to you to save enough money for retirement.

Diversify your savings and assets. 

A diverse mix of savings techniques, assets, and asset classes can help spread your risk and generate several income streams in retirement.

Take a look at annuities. 

Certain annuities, such as a fixed index annuity (FIA) with an income rider, can provide a lifetime income stream, acting as a form of "private pension." Unlike other investments, FIAs shield your money from downside risk, ensuring you never lose money.

Concentrate on tax planning. 

You may put money into your 401(k) for decades and end up with $1 million, but if you paid 25% in taxes when you withdraw it, it's a little to live on. As you plan for your golden years and consider how you'll withdraw money in retirement, always keep taxes in mind.